How much simple interest bill pay during term of contract

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Problem 1: William offers to buy Allan's house for $120,000 with a $20,000 down payment. The balance is to be paid by way of a three-year contract for deed with interest at 12 percent per year. If monthly payments are interest only, how much simple interest will Bill pay during the term of the contract?

A. $3,600

B. $12,000

C. $28,800

D. $36,000

Reference no: EM132757426

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